SOURCE: Blue Earth, Inc.

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September 17, 2014 09:15 ET

Blue Earth to Purchase Equity Position in PowerGenix With $10 Million Dollar Investment

Blue Earth Is Granted Additional Exclusive Marketing Rights for Nickel-Zinc Batteries That Utilize the Proprietary Intellectual Property of the Two Companies to Replace Environmentally Unfriendly Lead-Acid Batteries in Key Market Verticals

HENDERSON, NV--(Marketwired - September 17, 2014) - Blue Earth, Inc. (NASDAQ: BBLU) a renewable energy and energy efficiency services company, announced today that it has entered into a binding letter of agreement to acquire an equity stake in PowerGenix for $10 million payable through a combination of cash and Blue Earth common shares. Reciprocal equity ownership is designed to fund PowerGenix and maximize the working relationship between the two companies.

Blue Earth has been granted exclusive marketing rights to use the proprietary PowerGenix Nickel-Zinc ("NiZn") batteries to produce intelligent digital NiZn batteries using Blue Earth's proprietary intellectual property for a number of multi-billion dollar market verticals including: Stationary UPS Systems in the Data Center, Military, Telecom, Utility, Renewable Energy, Motor Start-Up, Frequency Regulation, Peak Shaving/Shifting and Demand Shifting market segments. The marketing rights are global for most market verticals.

Tim Hysell, Corp. Sr. VP of the Blue Earth Technology and Programs division stated, "We are excited to take advantage of the 5-year working history with NiZn batteries and the PowerGenix Leadership Team. Blue Earth's commercialized UPStealth battery backup system and its intellectual property, which utilizes NiZn, will forge an accelerated path to product development for many of these new exclusive market verticals. We expect to expand our research and development program significantly to expedite product innovation for the other market verticals utilizing PowerGenix's proprietary mono-block batteries which have been developed for the rapidly growing start-stop automotive markets."

"After years of development, PowerGenix nickel zinc energy storage solutions have matured. As a result, manufacturers of a wide variety of applications can now take advantage of nickel zinc capabilities to differentiate the performance of their next generation products. However, product development engineers are often challenged to not only design in a high performance battery but also develop Command & Control logic that optimizes the performance and economics of the energy storage system," commented Robert Kanode, CEO of PowerGenix. "PowerGenix is delighted to join the Blue Earth team!"

"We are excited about the new strategic partnership between PowerGenix and Blue Earth, which will expand the deployment of PowerGenix's unique NiZn technologies from the automotive micro-hybrid and mild-hybrid markets into multiple additional verticals in stationary storage. Blue Earth's investment validates the importance of NiZn as a more environmentally friendly and lower-cost alternative to Li-ion, and as a more powerful and greener alternative to traditional lead-acid batteries," commented Nancy Pfund, Founder and Managing Director of DBL Investors and a Board member of PowerGenix.

Dr. Johnny R. Thomas, CEO of Blue Earth stated, "We expect to develop exceptional intelligent digital battery products for very large market verticals as a result of this agreement. It is our expectation that these disruptive products with higher margins than other business units, should generate exceptional long-term value for our shareholders. As PowerGenix achieves forecasted success in start stop and micro hybrid automotive markets, we expect the value of our equity ownership to be an exceptional investment. PowerGenix owns over 100 patents on NiZn chemistry, of which approximately fifty percent have been issued. This strategic relationship allows us to combine our intellectual property with their intellectual property to create disruptive products. Our historical working relationship should allow Blue Earth to introduce new products for certain applications fairly quickly, while pursuing long term development activities for other market verticals." 

According to the Industrial Technology Research Institute IEK, conventional lead-acid batteries constitute a multi-billion dollar global market. The global market share of the lead-acid battery in 2010 was $36 billion, a growth of 8.6% compared to 2009. The future of the industry, following the market growth of automobiles, motorcycles and storage applications is estimated to have a 2-5% annual market growth rate until 2015. Of all the current downstream applications for lead-acid batteries, the largest ratio, approximately 60%, is still the starter battery for automobiles and motorcycles. Other application markets, approximating 18% of the lead-acid market applications, such as uninterruptible power supply (UPS), achieved an annual growth rate of 5 to 15%.

About PowerGenix
PowerGenix is the leading developer of high-performance, low-cost Nickel-Zinc batteries for automotive, industrial and stationary storage applications. PowerGenix Nickel-Zinc batteries are a superior alternative to lead-acid and other advanced chemistries, offering lower weight, higher energy density and improved cyclibility, which leads to lower costs over their entire service life.

PowerGenix, headquartered in San Diego, California also has a technology development and product engineering facility in Shenzhen, China that oversees its supply chain and raw material quality control, and provides direct support to its Asian customers. PowerGenix NiZn batteries have been certified by China National Labs and PowerGenix is working with several major automotive OEMs and Tier1 suppliers worldwide on the Stop-Start and Micro-Hybrid markets, including Peugeot and Hella.

PowerGenix's patented NiZn battery technology is inherently a high power, high rate capable chemistry that is also ideally suited for grid applications such as frequency and voltage modulation, peak shaving, and Transportation & Distribution (T&D) deferral. The batteries use an inflammable aqueous electrolyte, making them extremely safe and abuse tolerant across a wide temperature range.

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About BBLU
BBLU is engaged in the clean technology industry with a primary focus on the energy efficiency and renewable energy sectors. We strive to participate in the global movement for a sustainable planet by offering products and services that will optimize energy use, reduce harmful environmental emissions and substantially reduce energy costs to our customers. For more information about Blue Earth, Inc., please visit

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